Earnings response coefficient in the MENA region

This article documents the earnings response coefficient (ERC) for nonfinancial firms listed in the Middle East and North Africa region during the period between 2003 and 2013. Our results show significantly positive ERC for our sample firms. The results are robust across different countries and different industries. Our results also show that ERC increases with increasing the measurement interval. It indicates that more information is incorporated in prices as the measurement interval increase. Consequently, we argue that significance of reported earnings is higher for long-term investors in the MENA region.     

Disparate association between alliance social capital and the global pharmaceutical firm's performance

Some literature suggests that three dimensions of social capital—such as information volume, diversity and richness—have positive association with the firm's performance. However, these constructs and their implications cannot be taken for granted because they may not produce similar results in all contextual settings. The article develops and tests associations between dimensions of social capital and organizational performance in a multidimensional network system. This study provides an analysis on 252 pharmaceutical firms. The analysis shows disparate but insightful results. First, there is a positive association between information volume and the firm's performance. Second, there is a negative association between information diversity and the firm's performance. Third, there is no significant association between information richness and the firm's performance. Therefore, different dimensions of social capital had different links with the firm's performance. The paper provides some explanation and implications of these findings.     

Market response of US equities to domestic natural disasters: industry-based evidence

This study investigates US industry-based price response to domestic natural disasters over the period 1960–2015. Using an event study methodology, we estimate pre-, during and post-disaster impacts. We document a slower response in the pre-disaster period than in the post-disaster period. We further find that industries react differently to the same disaster and that reactions are not always negative. For example, meteorological disasters have a positive (negative) market impact on Gold (Banking). Moreover, we provide evidence that not every industry responds similarly to different disasters, e.g., Gold reacts positively (negatively) to meteorological (geophysical) disasters.     

Capital Structure and Value of Advertising Expenditures: Evidence from an Emerging Market

International Advances in Economic Research - This paper documents a non-linear impact of capital structure on the value of advertising expenditures in India during the period between 2004 and...     

Drivers of radical and incremental creativity—A moderated mediation framework

Researchers establish that rewards play an important role in shaping employees' creative behaviors. However, little is known about the underlying mechanisms that transmit the effects of rewards for creativity on different types of creative behaviors. Drawing on the sense making perspective, this study identifies unique mediators and moderators of reward—creativity relationship. The results of this survey-based study, comprising of 220 independent employee - supervisor dyads, suggested that enjoyment in the activity mediated the relationship between intrinsic rewards and radical creative behaviors. Moreover, the interactional effects of extrinsic rewards and their perceived importance on creative behaviors were mediated through perceptions of climate for innovation. These results provide important insights and guide managers in promoting distinct types of creative behaviors.     

Disability status,individual variable pay,and pay satisfaction: Does relational and institutional trust make a difference?

Although prior research suggests that disabled employees have different needs in the context of some HRM practices, we know little about their reactions to reward systems. We address this gap in the literature by testing a model using the 2011 British Workplace Employee Relations Survey (disabled employees, n = 1,251; nondisabled employees, n = 9,959; workplaces, n = 1,806) and find that disabled employees report lower levels of pay satisfaction than nondisabled employees, and when compensated based on individual performance, the difference in pay satisfaction is larger. We suggest that relational (derived from trust in management) and institutional (derived from firm‐wide policies and HRM practices, both intended to provide equitable treatment to disabled employees) forms of trust play important roles. The results of multilevel analyses show that when trust in management is high, the difference in pay satisfaction under variable pay is reduced. We find just the opposite for employees who work in organizations with a formal disability policy but without supportive HRM practices; the gap in pay satisfaction is exacerbated. However, the combination of the presence of a firm‐wide policy and HRM practices reduced the difference in pay satisfaction. Implications of the findings for theory, future research, and management practice are discussed.     

Individual and organizational learning from inter‐firm knowledge sharing: A framework integrating inter‐firm and intra‐firm knowledge sharing and learning

Literature has highlighted but not explored links between knowledge sharing and learning at inter‐firm and intra‐firm levels. Using the single case of an aviation refuelling company as the basis for our research methodology and collecting data through 34 semi‐structured interviews, we develop a framework that integrates knowledge sharing and learning at inter‐firm and intra‐firm levels. We show that intra‐firm knowledge sharing capabilities facilitate the diffusion of inter‐firm learning within organizations. Moreover, inter‐firm trust manifests in different forms that affect individual and organizational learning. The purpose of collaboration determines what a firm learns or discards. The findings are important for organizations facing a shortage of skills. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Human resource differentiation: A theoretical paper integrating co‐workers' perspective and context

This paper conceptualises “human resource (HR) differentiation” as a set of deliberate and differentiating HR practices across individuals within the organisation to address employees' unique work needs and preferences as well as reward them for their input. Despite the importance of HR differentiation, research has mainly focused on the recipients of such practices, overlooking the consequences of HR differentiation from co‐workers' perspective. This is a significant omission because a growing concern suggests that HR differentiation might be a double‐edged sword, as the presumed positive effects might only be confined to employees benefiting from it. Taking a first step, this paper offers a conceptual model that explains how co‐workers of a focal employee, who is entitled to an advantageous outcome through HR differentiation, are likely to react, either positively by showing contentment or negatively by showing anger, with behavioural consequences towards the focal employee and organisation. In so doing, we rely on deontic justice theory and explore contextual conditions at the individual and team level under which co‐workers react. As a result, our model can inspire future research by adopting a broader and more inclusive approach to HR differentiation, underlining the need for caution when implementing HR differentiation in a team setting.